All right, you’ve done all your research, you’ve taken stock of your life and your strengths and weaknesses and you’ve decided that being a real estate investor is just the life you were meant to live. Now what? How, exactly, do you get started in this field? Here are some tips that will help:
1. Treat this as a business
One of the biggest mistakes I see is people who want to treat this profession as a hobby. It’s not. If you’re counting on real estate investing to provide you with a livelihood, pay your bills and build up a retirement income, you have to treat it like a business.
By that I mean you have to advertise, devote time to it, show up for appointments on time, act professionally, do your paperwork properly and treat your clients professionally.
This is not a get-rich-quick venue. It takes time to build client lists, credibility, partnerships and associations. A well-grounded business is built over time unlike “overnight sensations”. It will take you 3 to 5 years to become a real success in this field.
2. Have a Plan
Any businesses need a game plan. Don’t rent an office, decorate it, and then sit behind your desk waiting for the phone to ring. Won’t happen. You need to target your market – get out there and advertise your services. Pass out 50 business cards a week (or whatever goal you decide is appropriate for the amount of business you want to generate). Talk to 50 people by phone. Make 10 offers a week, spend $100 a month on advertising – whatever your goal is, make it happen every single week –day in and day out – work the market. Eventually, you’ll start to see results.
3. Be Persistent
Anyone who’s ever been in sales will tell you that being persistent is the key to success. Just because a person says “No” to an offer the first time doesn’t mean that’s the final answer. Waiting a couple of weeks and checking back to see if the situation has changed can make all the difference, or changing the terms of the offer slightly to accommodate the seller can jump start negotiations.
Have a good follow-up system for tracking contacts, leads and conversations you’ve had with both buyers and sellers. You’ll get to the point where you’re so busy you can’t possibly remember all the conversations you’ve had with everyone – it’s important to be able to pull up that information so you know where you’re at in the negotiation process.
4. Have a Team on Your Side
Don’t wait until you have a deal pending, and need to ask questions before assembling a team you can turn to. You need to go out and cultivate relationships with players beforehand – find reliable professionals you can depend on – and don’t forget that the street goes both ways: be a reliable professional they can depend on! Here’s who you need on your team:
• Attorney – preferably someone who’s familiar with the needs of a real estate professional
• Title or Escrow Company – find one that specializes in dealing with investors.
(That’s not always the big name companies.) Make sure they understand land contracts and the whole concept of quick-turning houses.
• Insurance Agent – You need one that also understands land contracts, as well as the finer points of being a landlord.
• CPA – Find one that’s a real estate investor – they’ll know the in’s and out’s of the business.
• Contractor – You need a reliable professional that shows up on time, completes the job within budget and knows how to make suggestions that will save you money. Free estimates don’t hurt, either.
• Mortgage Broker – Find one that’s experienced with investors, knowledgeable and creative.
• Mentor – Someone that’s been there, done that.
5. Don’t waste your time with unmotivated sellers
This is another no-no. There’s a difference between being persistent with a seller or buyer who hasn’t yet made up their mind about what they want to do, and dealing with a seller who really has no intention of selling anytime in the near future.
Don’t waste your time if the seller falls into the latter group. How do you tell the difference?
Try picking up a copy of Ray Como’s Mastermind Script Book. It has dozens, if not hundreds, of questions that are designed to determine if a seller has the proper tool to earn
more money. Either way, it’s worth the price of admission.
There you have it! Follow these seven simple steps, and before you know it, you’ll be an outstanding real estate investor!
